Tort States - Auto Insurance Buying Tips

Get clear explanations of tort law and tort insurance here, find out how these regulations affect you as a driver and as a policyholder, and get some auto insurance tips for choosing coverage in a tort state. Our expert authors help you find out whether you’re in a tort auto insurance state or a no-fault state, what your coverage will leave you liable for under tort law, and more.

Tort Insurance Explained: What is it? How does it work?

By Michelle Burton

The tort auto insurance system is the most common type of auto insurance system in the country. Currently 38 states operate under a tort system compared with only 12 states that operate under some form of no-fault insurance. Under a tort auto insurance system, if you are involved in an auto accident, the person who is at fault for causing the accident is responsible for paying the other party’s medical expenses. The at-fault person may have to pay for additional damages for pain and suffering as well as lost wages.

Tort Law as it Relates to Auto Insurance: What Does This All Mean?

A tort is a civil as opposed to criminal wrong. There are three types of torts but only one, a tort based on negligence, applies to auto insurance claims. In order for a negligent tort to occur a legal duty must be owed, a breach of the duty had to have occurred, proximity between the breach and loss must have existed, and injury or damages must have resulted.